TRANSACTION SIZE AT COMMERCE-ENABLED WEB SITES

Source: ActiveMedia Research

Based on this report, the two largest segments represent 50% for the B2C segment and 77% for the B2B Segment of all transactions at Commerce –Enabled Web Sites are all above $100 per transaction.
As evidenced by the cost comparison in exhibit 1, to accept payments via credit/debit and echecks is extremely expensive compared to accepting payments via ACH.
Further, there are additional hidden and opportunity costs which will erode the bottom line. For example, when accepting credit/debit cards and echecks, it can take up to 3 business days to have the funds deposited into the company’s account. During this time the company is not benefiting from interest they can be earning. Based on the volume of the dollar amounts and time intervals this can translate into significant amounts of money which would be lost profits.

As evidenced by this report, by the year 2020, electronic payments will increase at the fastest rate and will become a main stream form of payment. Further, it is etransactus’ opinion, based on it’s own market research and cost analysis, that the benefits of electronic payments method is undervalued, and expect that by the year 2010, that electronic payments will make up approximately 35% of all transactions. The reasoning behind this estimate is based on the fact that technology to accept and process electronic payments on a mass scale has not been available, that is until now. etransactus will revolutionize the payments that are made and processed, saving time and money for all involved.
For the firm’s projections to be realized the business and consumer community must continue to accept technology and utilize it properly to take full advantage of its benefits. As evidenced by the report below, the number of people who utilize the Internet to make payments online has increased every year and is projected to increase in excess of 70% for year 2004 and in excess of 50% for year 2005.

US HOUSEHOLDS RECEIVING AND/OR PAYING BILLS ONLINE

PROPORTION OF PAYMENT MECHANISMS IN THE US, 2000 - 2010

ABOUT ETRANSACTUS, LLC
etransactus, LLC is a leading provider of automated billing solutions. The company through it e-suite™ product and it offerings provides an end to end billing, payment processing, time, customer service & support, inventory, staff, expense, purchase order, document & File Sharing, and Credit management from a single web based application which offers a comprehensive solution for all companies regardless of its vertical, with emphasis on the small to mid-size companies. For more information, contact (908) 916-5216.

Cautionary Statement
Statements contained herein which are not historical information are forward-looking statements. Such statements are subject to certain risks and uncertainties. Actual results could differ materially from those included in the forward-looking statements for a variety of reasons, including the level of acceptance of e-suite™ product by the marketplace, the ability of the product to achieve the results for which it is designed, the ability of the company to raise capital to fund operations and marketing programs for this product, competition from other approaches to automate billing solutions and other risks described in the company’s communications with investors. These statements are not guarantees of future performance and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements.